Alexa Is in Millions of Households—and Amazon Is Losing Billions [WSJ]
Alexa Is in Millions of Households—and Amazon Is Losing Billions [WSJ]
It’s a glorified light switch for us. Its ability to understand us has gotten worse and worse and they are inches from being tossed in the parts bin.
As a result, Amazon has lost tens of billions of dollars on its devices business, which includes Echos and other products such as Kindles, Fire TV Sticks and video doorbells, according to internal documents and people familiar with the business.
Between 2017 and 2021, Amazon had more than $25 billion in losses from its devices business, according to the documents. The losses for the years before and after that period couldn’t be determined.
Not as bad as total losses for VR/metaverse at Facebook, but still a tidy sum.
25 billion in 5 years is 5 billion a year. They make around 30 billion a year. Q1/2024 turnover was 143 billion.
I am pretty sure Jeff doesn't really care. He likely sees it as investment anyways.
Double digit percentage point impact on profits is no joke in the corporate world.
